"MBA students in the Finance concentration can take advantage of classes offered by the Financial Engineering program. The Finance concentration is very state-of-the-art in that, students upon graduation will enter into jobs such as: analysts (Brokerage House), associate investment bankers for IPOs and start-ups, and any Finance-side jobs in the consulting world. I would say, the Finance concentration coupled with Financial Engineernig courses, is the strongest concentration the MBA program has to offer."
Prof. Jay Prag,
Finance Concentration Advisor
Student Clubs/Associations of Interest
The study of finance involves determining what to invest in, how much to invest, where to obtain funds, and how capital markets work. You will be prepared for career opportunities managing the finances of industrial, commercial and marketing enterprises; insurance companies; government, hospitals and other not-for-profit service institutions. If your interest lies in the area of investment, you’ll find career opportunities with investment banks, security dealers, brokerage firms, pension funds, insurance companies, and investment funds. Specialized finance careers are also available with financial intermediaries such as commercial banks, savings and loans, and investment banks.
ELECTIVE COURSES IN FINANCE
MGT 475 A Fixed Income ( 4 units) This course introduces the practical, real world approach to bond investing, with detailed presentations of bonds and a wide range of interest-rate instruments. The class will discuss investment characteristics of bonds and interest-rate instruments, state of the art technology for valuing them, and portfolio strategies for using them. Specific topics include pricing, measuring yield, price volatility, municipal securities, non-U.S. bonds, performance measurement and evaluation, and interest-rate options evaluation. (Fall, Spring)
MGT 383 Economics Of Strategy ( 4 units) This class uses the business-related tenets of economics (old and new) to generate a modern, consistent, formal framework for strategic decision-making. Using economic intuition we will be able to address issues ranging from outsourcing to new product lines. We will be able to explain why some firms actively compete through price changes while others, in apparently similar competitive industries, do not. Economic theories seem very abstract to many students because these theories usually assume many unrealistic things about people and society. Students must be mindful of the fact that these assumptions are what allow economists to answer many otherwise intractable questions. The results that we attain usually hold even without these simplifying assumptions. This class will show how some of these economic models can provide a powerful, formal framework for answering managerial questions ranging from dealing with competition to setting proper incentives for managers. (Fall)
MGT 402 Asset Management Practicum (4 units) Theories of asset management are presented via textbook and other readings, lectures, case studies, and student and guest speaker presentations. Students will be responsible for inviting some of the guest speakers with consultation by the instructor. Asset management firms establish and review investment policy, conduct investment research, determine strategies to be implemented, select securities, enter and track orders, measure and report performance, and manage client relations. We will study all these activities in the course. (Fall)
Prerequisites: Corporate Finance(MGT 335) Students who have not completed the prerequisite must obtain specific approval from the instructor to enroll in the class.
MGT 339 Financial Derivatives & Risk (4 units) In this course, students develop an understanding of financial derivative instruments and their applications to corporate strategy and risk management. Throughout the course, we distinguish between using derivatives to appropriately manage risk and using them for speculation. We emphasize the perspective that derivative instruments are problem-solving tools that, when used correctly, can create value for financial and non-financial corporations. We develop the basic mathematical tools necessary for analysis, design, pricing, and implementation of derivatives in a managerial context. We cover foward, future, option, and swap contracts, hedging, arbitrage, and derivatives-pricing models. In addition, we introduce securitization, real options, and risk management. Through case preparation and discussion, students learn to model and evaluate derivative instruments and risk exposure. (Fall, Spring)
Prerequisites : MGT 335 Corporate Finance or permission of instructor.
"I have gained invaluable knowledge and analytical tools by learning from professors who taught us not only how to solve quantitative problems, but also develop in-depth understanding of fundamental principles of finance. In addition to technical analysis, I apply critical thinking and independent assessment whenever I construct valuation models, research companies, conduct due diligence and consult clients. Moving forward, I am confident that the training I've received at Drucker will lead to great opportunities in the world of finance and investments."
—Ashley Kim, Class of 2009
MGT 327 Financial Statement & Analysis (4units) This course focuses on fundamental financial analysis: how to interpret corporate financial data in light of current industry and economic conditions. It addresses earnings quality, financial metrics, pro-forma statements, and earnings management. This course compares the U.S. financial reporting system to other theoretical disclosure systems and non-U.S. financial reporting standards. (Spring)
Prerequisites: MGT 326
MGT 373 Financial Strategy & Policy (4units) This course will investigate the key financial choices of a corporation and their impact on the overall strategy of the firm. Payout policy (dividends and share repurchases) will be one of the topics covered in this course. We will then study the securities issuance decision of the firm, including intitial and secondary public offerings (IPOs and SEOs). Value creation and mergers & acquisitions will be another topic we will investigate. Finally, we will examine corporate governance policies as they pertain to the overall strategy of the firm. (Fall)
Prerequisites: MGT 335 Corporate Finance
MGT 476 Real Options (4units) The Real Options Valuation (ROV) approach to strategic investments= “Creating Value Through Flexibility.” ROV values dynamic risk = danger (wei) + opportunity (ji). With technologies changing, competition increasing and product cycles getting shorter, managers are faced with tough strategic choices whose outcomes will determine the success or failure of their enterprises. The strategically most valuable projects are also the most risky. Such strategic investments are made in the face of fundamental uncertainty. (Spring)
Prerequisites : A course on Corporate Finance and basic knowledge of option valuation